Samsung Heavy Industries has handed its self-rescue plan to Korea Development Bank (KDB), its main creditor, in an effort to help the shipbuilder restructure itself and avoid a bailout.
The yard plans to raise KRW220bn ($186m) by selling Samsung Hotel Geoje and holdings of securities, plus the closure of idle dockyards and additional lay-offs, according to Korean press.
Samsung Group companies own a 24.09% stake in the shipyard, but the plan does not include a capital injection from the group or the purchase of additional shares, reports say.
Samsung Heavy posted an operating profit of KRW6.1bn ($5.2m) during the first quarter this year, but this figure is a 76.8% decrease on what the yard made during the same period last year. The company did not win any significant new orders during the first three months.
